Philanthropic financiers
Since the days of the Rothschilds and J. P. Morgan, successful bankers and financiers have been instrumental in shaping the world of philanthropy. As influential as this established group of professionals has already been, a new generation of financiers is now emerging as leaders in charitable giving.
Portrait: John and Laura Arnold
Ages: 39 & 40
Giving level (2013): US$296.2m
Focus: Education, health and criminal justice
Goal: Public policy reform
John Arnold is used to taking the lead. He quickly became one of the most admired energy traders in the world after founding the hedge fund Centaurus in 2002. Five years later, he became the youngest billionaire on the Forbes 400 Richest Americans list. And, since retiring at the age of 38 in 2012, Mr Arnold, together with his wife, Laura, a former corporate lawyer and businesswoman, has worked on making just as significant an impact in philanthropy as he did in the financial world.
The Arnolds say it had always been their plan to make this transition to philanthropy. “We were both raised in middle-class households and attended public secondary schools,” they explain. “Our parents did not have the financial resources to give charitably on a large scale, but they instilled in us an appreciation for the opportunities we had and an understanding of the importance of making a difference whenever and however possible.”
As part of their philanthropic work, the Arnolds focus on building human capital and promoting policy reform in three main areas: criminal justice, education and public accountability. The couple believes that their work differs from conventional philanthropy in that it targets the nation’s biggest problems and tries to promote sustainable reforms by seeking wholesale policy changes to improve the quality of outcomes. The Arnolds explain their approach as “identifying endemic societal problems, collaborating with experts in the field to evaluate potential solutions, rigorously testing hypotheses to arrive at the best answer and, finally, seeking to implement those alternatives at scale through policy reforms”.
While the Arnolds take a long-term, directed and disciplined approach to philanthropy, they are also responsive in times of crisis. During the federal government shutdown in 2013, the Arnolds helped maintain the Head Start programme that provides meals, medical screenings and preschool for nearly a million children from low-income families through their charitable donations. And, although their private foundation, the Laura and John Arnold Foundation, may be the couple’s largest outlet for their charitable activity, the Chronicle of Philanthropy reports that the Arnolds have also given generously to their donor-advised fund for donating to causes such as Baylor College of Medicine and the ACLU Foundation.
Whether thinking big over the long term or reacting quickly to immediate challenges, the Arnolds have proved their capacity and eagerness to be among the most influential philanthropists of their time.
